February 18, 2012
The International Monetary Fund is likely to offer minimal funds for a second Greek aid package that is expected to be approved by euro-zone finance ministers Monday, leaving the bloc's governments to provide a much bigger share of the loans than they did in the euro zone's three earlier bailouts.
The IMF's smaller contribution reflects fears from the fund's membership that it is becoming overexposed to the euro zone, officials said. But less IMF support heightens the political problems facing some euro-zone governments, which are seeking desperately for ways to minimize the sums they will need to lend to Greece under a new loan package.
The IMF is set to provide just €13 billion ($17.07 billion) of a €130 billion aid package, people familiar with the talks said. That means the euro-zone governments will need to raise nearly €120 billion, far more than its €80 billion contribution to the first Greek bailout in May 2010.
An IMF spokeswoman said the exact size of the fund's contribution for Greece hasn't been determined yet. It will be a topic of discussions between senior euro-zone officials on Sunday and finance ministers on Monday aimed at striking a deal on the second Greek bailout and a restructuring of Greece's debt.after months of negotiations IMF officials are expected to attend Monday's meeting.
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